A FORMER Cairns childcare director who lived with a gay couple arrested in the US for procuring a son for sex with an international paedophile ring allegedly had images of the little boy in his possession.

The man, 29, was granted bail subject to a $5000 surety and stringent conditions after lengthy consideration from Magistrate Christine Roney on a charge of using Skype to distribute child pornography between September last year and February 2013.

It was alleged the man was the director of a Cairns childcare centre at the time.

Crown prosecutor Laura-Leigh Manville told the Brisbane Magistrates Court the man lived with a US citizen and that man's boyfriend and their ``adopted'' son ``Child X'' in a duplex in a Cairns suburb.

The US amn was sentenced to 40 years' jail in the US in June, while the other man is due to be sentenced in December on charges of conspiracy to sexually exploit a minor and conspiracy to possess child porn.

The boy was aged two to six when he was filmed being sexually abused by his parents and a global network of paedophiles called ``Boy Lovers'' in the US, New Zealand, France and Germany.

The couple allegedly paid thousands for the child but also claimed to have fathered him with a Russian surrogate in 2005.

The court heard ``Child X'' was taken into protective custody in October 2011 when the gay couple and their housemate were allegedly travelling together in the US.

Ms Manville said the charges against the childcare director came about after the computer hard drive of an associate of the network was recently examined by authorities in the US and shared with detectives in Taskforce Argos.

She said a number of child porn images had been transmitted online and shared between the two men, including of ``Child X'' and children known to the man.

Taskforce Argos Detective Sgt Ian Wells told the court under oath it appeared the man accessed the site up to two times a month to share images and discuss the contents of the images with others online.

He said the comments related to what they liked, age of the children in the images and whether they liked ``cut or uncut'', referring to circumcision.

``I believe it's child pornographic material,'' he told the court.

He said one of the images of ``Child X'' taken by the accused included an image of the naked child in the kitchen.

Sgt Wells said other, more concerning images, included 12 photographs of boys aged two to 12 which showed them naked or spread-legged.

``Some of them are posing provocatively and others are children that aren't posed, but it's the way the photos are taken that appears to be sexual,'' he said.

Defence lawyer Lyall Parker said the 12 images alleged to be child porn were in the lowest category.

Mr Parker said his client would return to NSW with his family to live and was happy to abide by conditions which limited his internet access and stopped him from having any contact with children.

He said the offending his client stood accused of was ``completely unrelated'' to his work as a childcare director.

The childcare director was extradited to Queensland from Victoria earlier this month and charged and has been in protective custody until today.

Ms Manville did not oppose the former childcare director's bail, subject to eight conditions including a non-contact order, residential and reporting stipulations including restrictions on his internet use.

Ms Roney said she was prepared to grant bail after also imposing a $5000 surety.

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